10 Best Alcohol Stocks to Buy According to Billionaires

8. Diageo plc (NYSE:DEO)

Number of Billionaire Holders: 7

Next on our list of the Best Alcohol Stocks is Diageo plc (NYSE:DEO), a British multinational alcoholic beverage giant with over 200 brands and sales in nearly 180 countries. The massive global footprint and the sheer breadth of its portfolio provide the industry giant with a solid foundation for strategic realignment and a strong buffer against market volatility associated with luxury goods.

Diageo plc (NYSE:DEO) reported net sales of $10.9 billion in the first half of FY 2025, down 0.6% YoY due to unfavorable foreign exchange rates. However, the company’s organic net sales returned to growth and increased $101 million or 1% YoY. Moreover, the spirits giant delivered share gains in almost all of its largest markets, including the US, most of Europe, and Greater China. Diageo’s iconic Guinness brand also delivered double-digit growth for the eighth consecutive half, supported by brand building expertise, innovation, and growing global momentum. DEO’s free cash flow rose by $125 million to $1.7 billion in H1 of 2025, but the company decided to maintain its half-year dividend at $0.405 per share, reflecting a cautious stance amid market uncertainties.

Diageo plc (NYSE:DEO) enjoys a commanding position in Scotch and boasts some of the Best-Selling Scotch Whisky Brands in the World, including Johnnie Walker, in its portfolio. The company owns nearly half of the Scotch whiskey stock currently in the maturing stage and its brands account for more than one in three bottles of Scotch sold globally.

RGA Investment Advisors stated the following about Diageo plc (NYSE:DEO) in its Q4 2024 investment letter:

“Diageo now trades at approximately 15x earnings, its lowest multiple since the aftermath of the financial crisis. This valuation comes as growth is on the verge of reaccelerating—a trend we expect to begin in 2025 and gain momentum in 2026. Additionally, Diageo’s margins have been under pressure as growth has lagged expectations. However, we believe the company has an opportunity to improve operating margins by at least 2 percentage points, if not more, through a combination of efficiency initiatives and renewed growth.

With investments in CAPEX and inventory tapering off significantly, we anticipate free cash flow to jump by over 20% in the current fiscal year, resulting in a free cash flow yield of 4.7%. Looking ahead, we expect free cash flow to grow well beyond revenue, with a path to a free cash flow yield of nearly 6% on our cost basis within two years. Meanwhile, as a high-ROE company, Diageo can continue to grow while paying out a dividend yield of 3.5%. In today’s environment, we find this combination of growth, cash flow, and yield incredibly compelling.”